Government has ordered Mobile Network Operators (MNOs) to stop passing on the 9% Communication Service Tax (CST) to subscribers of the various networks.
In a letter addressed to the National Communications Authority (NCA), from the Communications Ministry stated that the CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated.
It said, “At a series of meetings held between the Ministry of Communications, Mobile Network Organisations (MNOs) and the NCA on October, 7 and 8, 2019, we were informed that prior to 4 September 2019, MNOs had not been passing on CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers”
The telcos: MTN, AirtelTigo, Vodafone and Glo have been charging their customers the full amount of the revised Communication Service Tax (CST) since October 1, 2019.
But the Communications Ministry says it is wrong for them to do that.
It has therefore directed them to halt it with immediate effect.
Read below full statement: